Joann to Close All Delaware Stores After Second Bankruptcy Filing

After going bankrupt in January 2025, Joann Fabric and Craft Stores will close its doors across 49 states.

The chain buckled under $615.7 million in debt and still needs to pay suppliers $133 million. This final shutdown comes after a recent failed attempt to save the company by closing most locations.

"We explored every possible option to preserve the company, but given the financial constraints and changing market conditions, this decision became unavoidable," said management to Colitco.

The company was paying $26 million monthly in rent for its 800 stores. About 19,000 employees will lose their jobs. The warehouses still hold $538.3 million in unsold merchandise.

Store closing sales begin right away. Customers need to use gift cards by February 28. The stores won't take returns, and all sales and discounts have ended.

The company's problems started when craft sales dropped after the pandemic boom. Big retailers and online shops took their customers. Supply issues with basic items like yarn made the situation even worse.

GA Group will take over as part of the bankruptcy plan. This is the second time the company has failed within a year - their first rescue attempt in early 2024 didn't work out.

"I grew up going to Joann with my mom. It was our go-to place for holiday decorations, school projects, and my first sewing machine. It's heartbreaking to see it go," one shopper told Colitco.

The chain has stores in every state except Hawaii, and will keep selling until all inventory is gone.

Delaware stores set to close include locations in Dover and Newark.